Latest / WCHS Network Podcasts / 11/18/2024 Retire Right Radio with John Burdette

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11/18/2024 Retire Right Radio with John Burdette · WCHS Network Podcasts

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Speaker 1: Unlock your dream property with Meeks Realty Group, where Rich
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Speaker 1: the realtor makes real estate dreams a reality, whether it's
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Speaker 1: residential or commercial. We've got Charleston to Huntington covered. Your
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Speaker 1: key to exceptional real estate experience is start here Meeks Realtygroup.
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Speaker 1: Contact us at Meeks dot us.
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Speaker 2: The views and opinions expressed on this program do not
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Speaker 2: necessarily reflect the views and opinions of five eight WCCHS
0:22
Speaker 2: its employees or WVRC Media. This is retire Right Radio,
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Speaker 2: a weekly show from John Verdet at Fourth Avenue Financial
0:31
Speaker 2: that aims to answer your questions about financial planning, investing,
0:35
Speaker 2: and how to retire rite. Fourth Avenue Financial is located
0:39
Speaker 2: in downtown Charleston at one seventy Court Street. More information
0:43
Speaker 2: online at Fourth Avenue Financial dot com. Join the conversation
0:47
Speaker 2: by calling three oh four three four five fifty eight
0:50
Speaker 2: fifty eight or text three oh four nine three five
0:53
Speaker 2: fifty oh eight. On Retire Right Radio, Let's go live
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Speaker 2: to the studio with host Dale Cooper and John from
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Speaker 2: Fourth Avenue Financial, cons.
1:04
Speaker 3: And the good Monday Morning to you knowing It's not
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Speaker 3: Dale Cooper's Dave Allen in the host chair Today for
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Speaker 3: Retirement Radio John Burnett fro Fourth Avenue Financial, and I
1:13
Speaker 3: will make a correction to the phone number if you
1:14
Speaker 3: want to call us, because again we're kind of undergoing
1:17
Speaker 3: a major change around here. The number actually that you call,
1:19
Speaker 3: not what you heard in the intro. The actual numbers
1:21
Speaker 3: three zero four, three four two eight one three one
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Speaker 3: three zero four, three four two eight one three one
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Speaker 3: is the number to call if you have any questions
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Speaker 3: on your retirement, the markets, or anything going on in
1:31
Speaker 3: the world of financials.
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Speaker 4: With John Brenanda, Fourth Avenue Financial. Morning, sir, how are you.
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Speaker 5: I'm doing wonderful, Thank you for being here. Get it
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Speaker 5: for another week? Right? Yeah?
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Speaker 3: Yeah, that's this is the for a lot of people.
1:43
Speaker 3: This will be the last full week of work. And
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Speaker 3: I'm seeing more and more people that now take the
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Speaker 3: next week off, the entire week.
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Speaker 4: It used to be, well, maybe we'll.
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Speaker 3: Work Monday, Tuesday, maybe half a day on Wednesday. Then
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Speaker 3: everybody takes on Thanksgiving, and many people take off on
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Speaker 3: what it used to be known as Black Friday. It's
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Speaker 3: really not so much anymore because all the big deals
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Speaker 3: pretty much already there. But uh, but a lot of
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Speaker 3: people will be taking off the entire week to go back.
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Speaker 4: In my part of the world, it was to go
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Speaker 4: deer hunting, you know.
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Speaker 3: But but but uh, sometimes it's bargain hunting too, deal
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Speaker 3: deal hunt, deal hunt.
2:18
Speaker 5: But again, you know, I.
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Speaker 3: Think and and and I know this has been talked
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Speaker 3: about on many other shows in the past.
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Speaker 4: It's not the big deal. No pun intended that it.
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Speaker 3: Used to be, you know, the day after because when
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Speaker 3: all my years in radio, on that Friday after Thanksgiving,
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Speaker 3: I was always out doing a live broadcast, you know,
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Speaker 3: from some store or maybe a car dealership or.
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Speaker 5: Something, interviewing people like me when I had my kids
2:39
Speaker 5: were a little.
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Speaker 3: Yeah, and and you know, getting out at four am
2:42
Speaker 3: or five am. And now it's just it's I guess
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Speaker 3: the world of the world of the the Amazons is.
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Speaker 3: I don't want to say it's ruined, it's just changed it.
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Speaker 5: Oh, it's yeah, it's definitely changed that. And and of
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Speaker 5: course now there's small Business Saturday, which is a pretty
2:55
Speaker 5: pretty big thing nowadays as.
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Speaker 3: Well it should be as well, it should be you know,
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Speaker 3: I always say I'm a big propon to small business.
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Speaker 3: And uh, and of course everybody from time to time
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Speaker 3: has has to order from you know from or use
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Speaker 3: one of the big box stores.
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Speaker 4: They were from Amazon, or they used the big box
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Speaker 4: stores or whatever.
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Speaker 3: But if at all possible, you know these I don't
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Speaker 3: know the last time that Amazon donated to your Little
3:15
Speaker 3: League team or or your churches or whatever it is,
3:18
Speaker 3: your you know, civic organization, scouting or whatever. Try to
3:22
Speaker 3: support these these local businesses, small businesses, not just on
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Speaker 3: Small Business Saturday, but year round. And we have a
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Speaker 3: bunch of them here in Charleston.
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Speaker 5: I know.
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Speaker 3: It's a really really big deal here. It's on where
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Speaker 3: I live in over in the Hurricane area. It's also
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Speaker 3: a big deal of this. So trying to support these
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Speaker 3: small businesses.
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Speaker 5: Yeah, yeah, this is my wife's first first year in business.
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Speaker 5: She's she's going on month four now and at the
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Speaker 5: vintage of Bond Shop and you can you can see
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Speaker 5: the traffic picking up and really gearing up for the
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Speaker 5: holiday season.
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Speaker 3: So tell us a little bit more about that. I
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Speaker 3: know you have with Coop in the past, but about
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Speaker 3: your wife's business. For people will give you a free
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Speaker 3: little plug and won't even send you an extra bill.
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Speaker 5: How about that? How about that vintage and Vinees mrcantile
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Speaker 5: it's six o nine d Street in South Charleston. It's
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Speaker 5: basically ten thousand square feet of vintage, vintage and antiques.
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Speaker 5: She also has some really nice uh plants. That's where
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Speaker 5: the vines come come from in the name and uh
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Speaker 5: and in the back corner, I've snuck in a little
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Speaker 5: record section, so uh, I have the Department of records
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Speaker 5: in the lake.
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Speaker 4: I didn't know you were an audio file.
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Speaker 5: Oh yeah, we've got a We've got thousands of records
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Speaker 5: back there, and I'm I'm trying to build it out.
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Speaker 5: And so that's my uh kind of my weekend fun.
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Speaker 3: Is amazing how how that is taken off as as
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Speaker 3: something for collectors to do over the last maybe decade
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Speaker 3: or so. With the with the vinyl, everything that's old
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Speaker 3: is new again.
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Speaker 5: You know, it's definitely come back. We'll put it that way.
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Speaker 2: Uh.
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Speaker 5: And you know, I think people long for tangible things
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Speaker 5: in the digital age there.
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Speaker 3: You know, it's kind of interesting because there was always
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Speaker 3: that move you had vinyl early on and then that
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Speaker 3: I'm an eighties kid, so you know that begat cassette.
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Speaker 4: Well, I guess eight.
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Speaker 3: Tracks were first, and then and then cassettes and then
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Speaker 3: CDs were all the rage. In the mid eighties, and
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Speaker 3: then we started seeing things like iPods and things of
5:15
Speaker 3: that nature. But then twenty years or so ago, I
5:18
Speaker 3: remember the story was that the group Pearl Jam, when
5:20
Speaker 3: they were at the height of their popularity, released an
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Speaker 3: album on vinyl only, and there was a run on turntables.
5:27
Speaker 4: People were trying to go out.
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Speaker 3: People that were huge fans of that group went out
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Speaker 3: and said, well, how do I get a turntable? And
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Speaker 3: I know guy, I mean like weekly that does the
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Speaker 3: show in the afternoon. He's a big vinyl guy, Larry Shockley,
5:37
Speaker 3: who's on our sister station nine eighty seven to Mountain.
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Speaker 5: Yet they weep many times.
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Speaker 4: Big vinyl guys. Yeah, that's well.
5:42
Speaker 3: I hope your wife does well and she's doing special
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Speaker 3: things for small business Saturday.
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Speaker 5: Yeah, I think, I think so, you know, I'm not
5:50
Speaker 5: privy to all the details, but I've heard it talked about,
5:53
Speaker 5: so I'm sure they're going to be doing some events.
5:55
Speaker 5: And we had been talking on this show about me
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Speaker 5: doing there's a little meat room up there where I
6:03
Speaker 5: was going to do a just kind of a meet
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Speaker 5: and greet and sit down and have coffee and donuts
6:08
Speaker 5: and if anybody has financial questions just be available on
6:11
Speaker 5: a Saturday morning, and I keep trying to pick the date,
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Speaker 5: but apparently I've been bumped until after the first year
6:18
Speaker 5: by Santa Claus. I believe they're going to have Santa
6:22
Speaker 5: Claus in the shop there off the weekend. So I
6:25
Speaker 5: don't know the details of it, but I just I
6:27
Speaker 5: just know that I've been bumped until further notice.
6:30
Speaker 3: Like most men, you just know what you're told, right,
6:34
Speaker 3: you just told where to be and where to go.
6:35
Speaker 4: Stand over there, and.
6:36
Speaker 5: It's her story. You know. I do what I'm told
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Speaker 5: exactly right.
6:40
Speaker 3: Well, I hope the rest of my day goes better
6:42
Speaker 3: because I was telling you off the air I started
6:44
Speaker 3: my day this morning. I'd like to, you know, come
6:47
Speaker 3: up with some really really cool story for how I
6:49
Speaker 3: injured my back this morning. But I was picking a
6:51
Speaker 3: towel up off of the bathroom floor. I herd a pop,
6:54
Speaker 3: and so I'm dealing with that. Then I get to
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Speaker 3: the office this morning, and my office is on I
6:58
Speaker 3: guess what you would call the second here up the
7:00
Speaker 3: long flight of stairs, and I get up there and
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Speaker 3: I go to open my laptop and I bring in
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Speaker 3: every morning a large container of coffee black coffee and
7:09
Speaker 3: I open up the laptop, hit the top of the
7:11
Speaker 3: laptop onto the travel mug. Luckily it didn't go on
7:14
Speaker 3: the laptop which I just bought last week. It went
7:18
Speaker 3: all over the floor. So the and I share an
7:21
Speaker 3: office with a couple of other people. None of them
7:24
Speaker 3: will fall asleep today because the entire office smells like coffee.
7:27
Speaker 5: Right now.
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Speaker 4: That's that's how my dates are. But it's going to
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Speaker 4: get a whole lot better.
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Speaker 3: We're going to get into some financial things here, of course,
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Speaker 3: and as always you can call us with your questions.
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Speaker 3: Three zero four three four two eight one three one.
7:37
Speaker 3: That's a number to talk to John Burdett of a
7:39
Speaker 3: fourth avenue financial here retire Right Radio.
7:42
Speaker 5: John.
7:42
Speaker 3: The last time I was in for Coop and I
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Speaker 3: hosted the show, it was just days prior to the election.
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Speaker 3: And now that you know, we know we have a
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Speaker 3: decisive winner. What have you been hearing from your clients
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Speaker 3: out there following the election?
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Speaker 5: Well, of course, being in our red state here, most
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Speaker 5: people seem to be pretty happy with the outcome, you know,
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Speaker 5: and my job is really to try to temper that
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Speaker 5: to a degree you never want, whether it's excessive positives
8:12
Speaker 5: or negatives creeping into your financial decision making. You want
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Speaker 5: to be level headed and you know, hands off a
8:21
Speaker 5: little bit on the emotional decision making. So you know,
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Speaker 5: that's that's essentially what I try to do, try to
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Speaker 5: try to hit that middle ground somewhere because that tends
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Speaker 5: to long term pay off the best. The market responded
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Speaker 5: very well after the election, as we know, Mark was up,
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Speaker 5: you know, fourteen hundred points the day after something like that.
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Speaker 5: So last week was a little bit of a give
8:49
Speaker 5: back week. Market's still up above the pre election numbers,
8:53
Speaker 5: but it has given back a little and some of
8:55
Speaker 5: that it has more to do really with the with
8:59
Speaker 5: the with the bond market. The expectations of interest rates
9:07
Speaker 5: cuts UH may have gotten ahead of themselves a little bit,
9:10
Speaker 5: and there's some reality. Last week there was a inflation
9:14
Speaker 5: report that came in. It came in in line, but
9:18
Speaker 5: I think, you know, folks were hoping that there may
9:21
Speaker 5: have been some more progress on that. And so you know,
9:26
Speaker 5: a few weeks ago we were talking about there might
9:29
Speaker 5: be seven rate cuts over the next over the next
9:32
Speaker 5: twelve months, and now the market is pricing in maybe
9:35
Speaker 5: only three more. So I think that has had a
9:40
Speaker 5: little bit to do with what's what's going on, and
9:43
Speaker 5: and that may or may not be related to you know,
9:45
Speaker 5: some of the policies being talked about in the you know,
9:48
Speaker 5: in the having to do with the election. But but
9:53
Speaker 5: certainly that's that that I think is what's happening. And
9:56
Speaker 5: you know, the market election week after the election was
9:59
Speaker 5: up over five percent. Last week it gave back one
10:02
Speaker 5: and a half two percent of that.
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Speaker 4: Well and again right after the election.
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Speaker 3: And of course the election was on the on Tuesday,
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Speaker 3: November the fifth, and on November the sixth, that's when,
10:12
Speaker 3: as you alluded to earlier, John, that's when the markets,
10:14
Speaker 3: you know, basically.
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Speaker 4: Exploded that day.
10:16
Speaker 3: And a lot of people because shocking here people tend
10:21
Speaker 3: to be partisan, you know, with their candidates, and they said, oh,
10:24
Speaker 3: this is a sign of things to come, sign of
10:26
Speaker 3: things to come. I'm not saying it's it is or isn't,
10:28
Speaker 3: but like you said, it's it's going to write size
10:30
Speaker 3: itself a little bit.
10:33
Speaker 5: Yeah. I mean, no one knows from day to day
10:34
Speaker 5: what the market is, and there's so many variables, as
10:37
Speaker 5: you know, there are so many variables, and in an
10:40
Speaker 5: election in itself has very little to do with with
10:46
Speaker 5: day to day policy, day day living. You know, most
10:49
Speaker 5: of the things like you have a it sounds like
10:51
Speaker 5: a coffee habit. Yeah, that's going to probably continue no
10:54
Speaker 5: matter who the president is. And that's part of economic activity.
10:58
Speaker 5: And so a lot of the economic activity and the
11:03
Speaker 5: earnings the result of that activity for these companies is
11:07
Speaker 5: kind of baked into our habits, not so much policy changes. Now.
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Speaker 5: You know, policies mean something and and and I'm not
11:17
Speaker 5: saying it doesn't have an effect, but those things take
11:20
Speaker 5: time to develop and time to pass and time to
11:23
Speaker 5: put through. And usually companies are watching these things and
11:31
Speaker 5: making adjustments to these things in advance. And and it
11:36
Speaker 5: doesn't always affect corporate earnings like you think that it will.
11:41
Speaker 5: You know, a good a good example of that as
11:45
Speaker 5: the previous last election, but the previous one when Biden
11:48
Speaker 5: was elected, there, oh, there goes the end of oil
11:51
Speaker 5: and gas stocks. That wasn't the case at all. Now
11:54
Speaker 5: it some of those policy changes affected certain people that
11:57
Speaker 5: were maybe working in the fields putting those pipe lines together,
12:00
Speaker 5: things of that nature, and that wasn't good for those folks.
12:04
Speaker 5: But the companies themselves maintain their profitability, grew their profitability,
12:09
Speaker 5: and their stocks did okay.
12:10
Speaker 3: And I've always said again, we're talking with John Bredadd
12:13
Speaker 3: and a retire right radio fourth they a ANUE financial
12:15
Speaker 3: Dave Allan in for Dale Cooper today. I have always
12:17
Speaker 3: said that nobody, you know, no matter what happens on
12:20
Speaker 3: as we saw November the sixth, the day after the election,
12:24
Speaker 3: people are going to be angry or they're going to
12:26
Speaker 3: be elated, one of the two. But your daily life continues,
12:31
Speaker 3: and the sun's still going to come up, and you're
12:33
Speaker 3: still going to make breakfast, You're still gonna argue with
12:35
Speaker 3: your spouse, or you're going to do you're going to
12:37
Speaker 3: follow your sports teams, and you're gonna get up and
12:39
Speaker 3: go to work, and you're gonna do all.
12:40
Speaker 4: The things that you do.
12:42
Speaker 3: And then you kind of sit back and say, Okay,
12:44
Speaker 3: what are the policies of a new administration? In this case,
12:48
Speaker 3: it's an old administration, that's new administration. But there'll be
12:50
Speaker 3: some changes. Of course, we don't know right away what's
12:54
Speaker 3: going to happen. And I said this, I'm not going
12:56
Speaker 3: to get into politics with you, but I've said this
12:57
Speaker 3: on my show right before the election in my lifetime
13:01
Speaker 3: and the first election presidential election I voted in was
13:04
Speaker 3: nineteen eighty eight. I have never seen an election when
13:07
Speaker 3: people said if the other side wins, didn't matter what
13:11
Speaker 3: sun it was that the Republic as we know it
13:14
Speaker 3: is over. And I kind of opined on that by saying, well,
13:16
Speaker 3: this grand old lady, the United Central America has been
13:18
Speaker 3: along for a long long time. And we survived Civil War,
13:22
Speaker 3: and we survived nine to eleven, and we survived World
13:24
Speaker 3: War one, World War two and all these things and
13:28
Speaker 3: we're still here. And I hope, you know that may
13:30
Speaker 3: be a little little pollyanni ish on my on my
13:34
Speaker 3: on my behalf, but I still like to think that
13:36
Speaker 3: we're going to be okay regardless.
13:39
Speaker 5: Yeah, yeah, I think that's the case. As long as
13:41
Speaker 5: people are free enough to make their own decisions, you know,
13:46
Speaker 5: are individuals pursuing their the best for them. You know
13:52
Speaker 5: that that is how we keep improving. And hopefully that
13:56
Speaker 5: as long as we're free, people, you know, will make progress.
13:59
Speaker 3: And Trump was elected, you know, the first time in
14:02
Speaker 3: twenty sixteen as a as a business man. That's that's
14:05
Speaker 3: why a lot of people that that's why they support
14:06
Speaker 3: him because he was a businessman. And it seems especially
14:09
Speaker 3: going forth with this newer administration that there's talking they
14:12
Speaker 3: was talking about at one time. I'm talking to Jamie
14:15
Speaker 3: Diamond may join the administration. Apparently that's not going to
14:18
Speaker 3: be the case, but he has, like you got Elon
14:21
Speaker 3: Musk and some others are going to be policy advisors
14:24
Speaker 3: of nothing else.
14:25
Speaker 5: Yeah, you know, I think for the market, I think
14:30
Speaker 5: one of the things that was looming as an unknown
14:33
Speaker 5: the market, to be honest with you, sometimes more so
14:37
Speaker 5: than good policy or bad policy, the market does not
14:41
Speaker 5: like unknowns. And one of the big unknowns was what
14:46
Speaker 5: tax policy was going to be, because we had some
14:49
Speaker 5: sunsetting tax laws, tax cuts and things like that that
14:55
Speaker 5: were coming up, and and you know, with we don't
14:59
Speaker 5: know what the pol are going to be. But I
15:01
Speaker 5: think it was a you know, the corporate tax rate
15:05
Speaker 5: going from twenty one to twenty eight. I believe the
15:09
Speaker 5: expectation after the election, I think was a sigh of
15:12
Speaker 5: relief that, look, we don't know what tax rates are
15:15
Speaker 5: going to be, but they're probably not going to get worse,
15:20
Speaker 5: you know, So it kind of put a guardrails around
15:25
Speaker 5: the possibilities of the unknown, and that I think is what,
15:32
Speaker 5: you know, made the market respond the way that it did.
15:35
Speaker 5: And of course, now as Tom has passed a little
15:38
Speaker 5: bit since the election, now people are focusing on things
15:41
Speaker 5: like tariffs. Well, tariffs could be not necessarily good for
15:46
Speaker 5: the economy if they're not used correctly.
15:50
Speaker 3: Explain that, because that was one of the things that
15:52
Speaker 3: that President Trump really ran on, was was a shake
15:56
Speaker 3: up in the tariff system. And I've read of pro
16:00
Speaker 3: and con on this, so I'll defer to the expert
16:03
Speaker 3: on this.
16:04
Speaker 5: Well, and you know, I'm expert is loose on this one.
16:07
Speaker 5: But but somebody who knows more than I do.
16:09
Speaker 4: Okay, somebody knows more than.
16:10
Speaker 5: I do, We go ahead. But you know, the idea
16:12
Speaker 5: with trade is that people can specialize in the things
16:16
Speaker 5: they do the best, and if they do the best,
16:19
Speaker 5: if they do that, then then they're able to produce
16:22
Speaker 5: goods and services more efficiently and and things are cheaper
16:26
Speaker 5: that way. You know, tariffs puts puts a barrier up
16:31
Speaker 5: between possibly the lowest cost and and uh in the
16:36
Speaker 5: in the store shelf that you're you're buying it from. Now,
16:41
Speaker 5: I think the real debate politically is, you know, Trump
16:45
Speaker 5: was using a pretty broad brush with tariffs in the campaign.
16:53
Speaker 5: Is that a negotiating tool, which he has used many
17:00
Speaker 5: times in the past to put people on notice. Or
17:04
Speaker 5: will this actually break out into some kind of a
17:07
Speaker 5: global trade war or will it be focused on the
17:11
Speaker 5: situations and companies that are imbalanced with our trade policy.
17:17
Speaker 5: And there are a lot, and there are a lot,
17:19
Speaker 5: and that may be. You know, I saw an article
17:26
Speaker 5: about washing machines. I guess there were some trade imbalances,
17:35
Speaker 5: unfair trade practices with washing machines when Trump was in
17:40
Speaker 5: the first time and tariffs were put on, and the
17:43
Speaker 5: price of washing machines spiked up when those tariffs went on,
17:49
Speaker 5: but within a couple of years they were back to
17:53
Speaker 5: where they were. It was a temporary spike, not a
17:56
Speaker 5: lasting spike. And in fact of those companies did reassure
18:02
Speaker 5: some some manufacturing. So h it just really depends on
18:10
Speaker 5: on how this plays out. I mean, it could go
18:12
Speaker 5: either way. In there. Again, the market doesn't like the unknown.
18:16
Speaker 3: And of course we know who the person the White
18:18
Speaker 3: House is going to be, and now we know the
18:19
Speaker 3: makeup of what Congress is going to be. And sometimes
18:22
Speaker 3: you know, no, no president is an absolute rulert and
18:28
Speaker 3: they got there's a there's a reason why our fourth
18:30
Speaker 3: forefathers were smart enough to put in in place a
18:32
Speaker 3: set of checks and balances, and uh, and and and
18:36
Speaker 3: so there's.
18:36
Speaker 4: A lot of that that has to be considered.
18:38
Speaker 5: Well, even with even with the Republican Party controlling all
18:43
Speaker 5: the branches. I mean, there's still the filibuster and and
18:47
Speaker 5: and and the the veto and and all of those
18:50
Speaker 5: things that that come into play. But I mean, uh,
18:53
Speaker 5: the the sixty votes you need in the Senate to
18:57
Speaker 5: you know, there there are all kinds of things that
18:59
Speaker 5: are there for protections that slow the slow the train
19:06
Speaker 5: down a little bit, which some people complain about that
19:09
Speaker 5: why do we want to slow train? And well, we
19:11
Speaker 5: want to slow train so debate can happen, so everybody's
19:15
Speaker 5: opinions can get thrown into the pot, and and we
19:18
Speaker 5: come out with something that is a compromise. And uh,
19:22
Speaker 5: that's that's worked for a long time, and it protects
19:24
Speaker 5: the rights of those that maybe aren't as happy in
19:28
Speaker 5: in an election outcome.
19:31
Speaker 4: And I think too, then and we'll do this and
19:33
Speaker 4: we'll go to break.
19:33
Speaker 5: Uh.
19:34
Speaker 3: I think there's probably a lot more people on the
19:37
Speaker 3: same page in Washington than what there will be at
19:40
Speaker 3: the state capitol and the reason I say that is
19:42
Speaker 3: because there's a lot of parallels here. I mean, obviously,
19:45
Speaker 3: the Republicans are firmly in control of the state of
19:46
Speaker 3: West Virginia and the state Capitol, but we in West
19:49
Speaker 3: Virginia over the next couple of weeks or in the
19:52
Speaker 3: new year, I'm not exactly sure the date we're going
19:54
Speaker 3: to decide who the new who the Senate President will be.
19:56
Speaker 3: And we're already seeing three leading contenders, Tom Tacubo, Eric Tarr,
20:03
Speaker 3: and Randy Smith, and faction starting to build. You know,
20:06
Speaker 3: I support this person, I support that person, whatever, and
20:09
Speaker 3: and so that's something that you know that we have
20:12
Speaker 3: to take a look at as well, because sometimes in
20:14
Speaker 3: the Democrats ruld West Virginia John for eighty three years,
20:18
Speaker 3: and so they weren't always on the same page. And
20:20
Speaker 3: I say that The point I'm trying to make is
20:22
Speaker 3: that they're even within the parties, whether it's a Democrat
20:24
Speaker 3: or Republican Party or whatever, there's going to be division
20:27
Speaker 3: in there. And it makes for debate, which I personally
20:31
Speaker 3: think is good.
20:32
Speaker 5: Yeah, anytime you're debating, that's that's the that is what
20:37
Speaker 5: you want. I mean, that's how you come up with
20:39
Speaker 5: like say, compromise and solutions that work better for everybody.
20:44
Speaker 5: Might not work for everybody, but work better for everybody.
20:46
Speaker 5: You know, it's a messy system, but it's the best
20:49
Speaker 5: way you know that I think that we've come up
20:52
Speaker 5: with yet.
20:52
Speaker 4: Yeah, across the world.
20:54
Speaker 3: Yeah, talking to John bred down to fourth they have
20:56
Speaker 3: a new financial that's retire Right Radio. If you learn
20:58
Speaker 3: to give us a call, he's here to answer your questions.
21:00
Speaker 3: Three zero four three four two eight one three one. Again,
21:03
Speaker 3: that's the new re routed number, at least for the
21:05
Speaker 3: time being. Three zero four three four two eight one
21:08
Speaker 3: three one. We'll check a break. We're back after this
21:10
Speaker 3: on the Voice to Charleston WCCHS.
21:13
Speaker 6: Retire Right Radio was sponsored by Fourth Avenue Financial, which
21:15
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21:31
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21:34
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21:37
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21:40
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21:42
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21:45
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21:47
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21:51
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21:53
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21:56
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21:59
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22:02
Speaker 6: its content.
22:03
Speaker 3: As retirement approaches, are you confident in your financial plan?
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23:03
Speaker 2: This is retire Right Radio with John Burdett from Fourth
23:07
Speaker 2: Avenue Financial taking your calls at three oh four three
23:11
Speaker 2: four five fifty eight fifty eight or texts on three
23:14
Speaker 2: oh four nine three five fifty oh eight.
23:20
Speaker 4: And welcome back. It's save forty five.
23:22
Speaker 3: Ryan Nicholson is our producer today and the number to
23:25
Speaker 3: call for John Burnett's again a little different than What
23:27
Speaker 3: the What, the intro and the rejoins s three zero
23:30
Speaker 3: four three four two eight one three one three zero
23:34
Speaker 3: four three four two eight one three Wonder You Can
23:36
Speaker 3: Texas three oh four nine three five five zero zero
23:39
Speaker 3: A Dave Allen Infdial Cooper Today on Retire Right Radio,
23:43
Speaker 3: brought to you by the folks of fourth Avenue.
23:45
Speaker 4: Financial. I want to bring this up to you.
23:48
Speaker 3: There's a lot of talk in the news John about
23:49
Speaker 3: the problems with PEIA in West Virginia. Matter of fact,
23:52
Speaker 3: Chris and Jeff on the Morning News this morning, we're
23:54
Speaker 3: talking about a series of hear considered being held all
23:56
Speaker 3: over the state, some virtual it's going to be one
23:58
Speaker 3: of Charleston here in just a couple of days. And
24:01
Speaker 3: the reason I bring this up is because sometimes when
24:04
Speaker 3: folks hear about these rises in the premiums in p
24:08
Speaker 3: E I A and uh, you know, for years it
24:11
Speaker 3: was always said, well, you know in state government, Uh,
24:14
Speaker 3: if you're working in West Virginia, you don't necessarily make
24:16
Speaker 3: a whole lot of money, but you get a lot
24:18
Speaker 3: of the perks, including a lot of days off and
24:20
Speaker 3: the benefits. But now pe I A is kind of
24:23
Speaker 3: doing what you know, other other insurance carriers have done
24:26
Speaker 3: over the years, and they're having to raise those rates.
24:29
Speaker 3: And the reason that I bring that up is because
24:31
Speaker 3: I want to kind of say, are you seeing anybody
24:33
Speaker 3: that are showing concern about this? Because we're talking about
24:37
Speaker 3: some pretty if this goes through as being being talked
24:40
Speaker 3: about here, I mean, we're talking about some pretty substantial
24:42
Speaker 3: rates here, John.
24:44
Speaker 5: Yes, but no, I haven't. I haven't heard a lot
24:47
Speaker 5: of individual talk about about that specifically. I do hear
24:51
Speaker 5: a lot of talk just in general about healthcare costs
24:55
Speaker 5: and retirement. Yeah, you know, that is one of the
25:00
Speaker 5: shoes that one is unknowable what you face in the
25:03
Speaker 5: future health wise. But two, insurance rates have have tended
25:10
Speaker 5: to rise faster than the rate of inflation over time,
25:13
Speaker 5: which as a fixed income retiree, you know that's that's
25:19
Speaker 5: a source of pressure on your budget. And I think
25:27
Speaker 5: that is that is where trying to understand your budget,
25:31
Speaker 5: understand your situation, and make sure you're allocator properly can
25:35
Speaker 5: take care of a lot of that. You know, when
25:38
Speaker 5: you're working, your wage tends to keep up with inflation,
25:43
Speaker 5: and so as as inflation happens, it doesn't always in
25:47
Speaker 5: a smooth line, but it tends to keep up. You know,
25:49
Speaker 5: you're making probably more today than you are twenty years ago.
25:53
Speaker 5: I hope now now you might not be able to
25:56
Speaker 5: buy that many more loaves of bread, but your wage
25:59
Speaker 5: has kept up up with the rising costs of that
26:01
Speaker 5: over time. Well, when you're a retiree and you're no
26:04
Speaker 5: longer delivering goods and services into the marketplace actively like
26:08
Speaker 5: you are when you work. You're somewhat fixed unless you've
26:13
Speaker 5: got money working for you in the marketplace. And that's
26:17
Speaker 5: what owning stocks does for you, and historically it's done
26:20
Speaker 5: a good job at over time, you know that company
26:24
Speaker 5: that you own, their earnings are also growing, just like
26:26
Speaker 5: your wages do when you work. And if their earnings
26:29
Speaker 5: are growing over time, then the stockholder benefits and it
26:35
Speaker 5: tends to keep up. The stock prices tend to keep up,
26:38
Speaker 5: the dividends tend to keep up over time, just like
26:43
Speaker 5: you were doing when you were delivering the goods and
26:45
Speaker 5: services yourself. So the way to deal with a lot
26:49
Speaker 5: of those costs is to make sure that the knee
26:51
Speaker 5: jerk reaction is when you get to retirement, I need
26:53
Speaker 5: to become so conservative I can't lose anything. And the
26:58
Speaker 5: real answer there is you need to find a balance.
27:01
Speaker 5: You need to find the balance between your short term
27:03
Speaker 5: needs and your long term needs. And if you're too
27:07
Speaker 5: conservative because you don't want to quote lose money, you're
27:11
Speaker 5: almost ensuring that you lose purchasing power, and so you're
27:17
Speaker 5: taking on a risk that's hidden to you. You know,
27:20
Speaker 5: everybody sees the account statement go up and down, but
27:26
Speaker 5: you know the fact that you can't buy as much,
27:29
Speaker 5: you know, as many groceries. That happens slowly over time,
27:33
Speaker 5: like you know boiling water. You know, it's just all
27:37
Speaker 5: of a sudden it erupts into boiling and you don't
27:40
Speaker 5: want that to happen to your retirement budget. And you know,
27:45
Speaker 5: people are a little more aware of that risk because
27:47
Speaker 5: we went through this bout of inflation after tame inflation
27:50
Speaker 5: for so long. But ownership of companies, I mean, you
27:55
Speaker 5: can see it right now. Yes, the price of things
27:58
Speaker 5: have gone up, but so is this block market. You know,
28:02
Speaker 5: when you balance that out, that's why you know this
28:06
Speaker 5: round of inflation has not cut evenly. You know, you
28:09
Speaker 5: hear this disparity between the haves and have nots. The
28:14
Speaker 5: fact of the matter is, if you have assets, this
28:18
Speaker 5: inflation really hasn't hurt you that much because your assets.
28:22
Speaker 5: You know, you go to the grocery store, that might
28:24
Speaker 5: cost an extra fifty one hundred dollars, but your portfolio
28:27
Speaker 5: is up another two hundred thousand. You can you can
28:31
Speaker 5: afford more than afford that extra grocery store bill onless
28:36
Speaker 5: you have those assets.
28:37
Speaker 3: The only thing I would say to that, and I
28:38
Speaker 3: certainly agree with what you're saying, John, but I think
28:40
Speaker 3: that the average person, though may not know off the
28:45
Speaker 3: top of their head about their portfolio, but they do
28:48
Speaker 3: know what a pound of bacon costs, right, you know.
28:50
Speaker 5: Right, So that's why they need to call us.
28:52
Speaker 3: Yeah, exactly if your bacon is too expensive, called John
28:56
Speaker 3: Brendand is.
28:56
Speaker 4: That what you just said.
28:57
Speaker 5: That's pretty much what I said. Yeah, that's We'll break
28:59
Speaker 5: it down for you.
29:01
Speaker 3: And I think that's where a lot of people, and
29:03
Speaker 3: again going back to the election and not playing politics here,
29:06
Speaker 3: but this was where a lot, you know, prior to
29:08
Speaker 3: the election, people were talking about the economy and they
29:11
Speaker 3: were saying, you know, record job growth we've got, We've
29:14
Speaker 3: added all these jobs to the economy, the economy was
29:17
Speaker 3: soaring and all, and that may very well be true,
29:19
Speaker 3: but there's so many different metrics that you have to
29:22
Speaker 3: look at, and all of that really doesn't mean a
29:25
Speaker 3: whole lot. When the person goes to the store and
29:28
Speaker 3: the staples that they normally buy, be it the milk,
29:33
Speaker 3: the bread, the lunch meat, potato chips, or whatever, that
29:35
Speaker 3: they go to the ground beef is sky high, and
29:38
Speaker 3: they don't really care about what you say about the
29:42
Speaker 3: job growth and all this other stuff. That all they
29:44
Speaker 3: know is is that they are paying. And sadly, most
29:46
Speaker 3: people at America, at least a great number live paycheck
29:49
Speaker 3: to paycheck.
29:50
Speaker 5: Even and paycheck to paycheck has been under pressure for sure.
29:54
Speaker 3: Yes, And that's what people realize when they go in
29:56
Speaker 3: and said, well, it's really nice we have record job
29:58
Speaker 3: growth under this administration or what ever. But I'm paying
30:01
Speaker 3: three times more, two times more whatever the number is,
30:04
Speaker 3: uh for for for a dozen eggs, loaf of bread,
30:07
Speaker 3: whatever than what I.
30:08
Speaker 5: Did last year, right right. Well, Also, I think about
30:12
Speaker 5: a third of the job growth have been in government.
30:14
Speaker 4: Jobs too, so well, and I'll that's a different case.
30:17
Speaker 3: And I will say that that's one of the things
30:19
Speaker 3: that the new the new old president is saying coming
30:22
Speaker 3: in is that, uh, he's going to form committees that
30:24
Speaker 3: are going to look at this and say, do we
30:26
Speaker 3: really need all of these people?
30:28
Speaker 5: I don't know.
30:28
Speaker 3: Again, we're not getting into politics, but I'm just saying
30:30
Speaker 3: that's that's what the statements.
30:32
Speaker 5: Uh that that have been made, well, you know, and
30:35
Speaker 5: I don't want to get too deep into it either.
30:37
Speaker 5: But you mentioned the before about the deporting, and it
30:42
Speaker 5: costs so much to deport a person. You know, people
30:45
Speaker 5: look at all this government spending and it does wash around,
30:52
Speaker 5: however inefficiently. It's not like, you know, for the government
30:56
Speaker 5: to spend, it has to be produced by people first,
30:59
Speaker 5: because they don't produce themselves. So it has to be produced.
31:02
Speaker 5: The goods and services have to already be there because
31:05
Speaker 5: the people produced it. And so when you say the
31:09
Speaker 5: government is spending too much, what you're really saying is
31:14
Speaker 5: we are allowing the government to allocate our resources in
31:20
Speaker 5: the way that they see fit versus the way an
31:22
Speaker 5: individual might do it. And there's a big difference sometimes, well,
31:26
Speaker 5: you know, there is a difference. Of course, that is
31:28
Speaker 5: one of the political arguments. I don't want to go
31:30
Speaker 5: too far into one side of this argument, but that's
31:34
Speaker 5: really what's happening. You know, it's not that the government
31:37
Speaker 5: is spending money that it made out of thin air.
31:42
Speaker 5: You know, the people already produced or it wouldn't have
31:44
Speaker 5: money to spend. And so who gets to allocate it,
31:50
Speaker 5: the people or the government. And you know, and then
31:53
Speaker 5: the other people say, well, the government's an extension of
31:55
Speaker 5: the people. Well, that's that's to a degree true. Is well,
32:00
Speaker 5: but you know all of those things are going on
32:04
Speaker 5: and we'll go on until the end of time. Yeah,
32:08
Speaker 5: but you retire once.
32:09
Speaker 4: Yeah, you know, you.
32:10
Speaker 5: Retire once, and it's probably wise to keep your head
32:16
Speaker 5: down and focus on the things you can control. Make
32:19
Speaker 5: sure you're living below your means, make sure you're creating
32:22
Speaker 5: savings and investment. Make sure you're getting an allocated correctly
32:26
Speaker 5: so that when you get down to the time you
32:29
Speaker 5: need that money, it will be there. And if you
32:32
Speaker 5: take those steps, no matter what the policies are, no
32:35
Speaker 5: matter who's in charge of the government, it's hard to
32:39
Speaker 5: see how you're not going to be better off.
32:42
Speaker 4: What's the best way?
32:44
Speaker 3: I listen to your show every week as I'm getting
32:46
Speaker 3: ready for my show at nine o'clock, and I hear
32:48
Speaker 3: you in KOOPSA, what's the best way to use the term?
32:51
Speaker 4: You use the ternal a lot living below your means?
32:54
Speaker 3: Give me some a few of exam I know we
32:56
Speaker 3: only have like five minutes left, but give me a
32:58
Speaker 3: few examples of ways that people can do that more effectively.
33:02
Speaker 5: Well, it sounds like you're a good example this morning.
33:07
Speaker 5: From your story. You brought your coffee in. You didn't
33:11
Speaker 5: drive through and pay six dollars for a nowt of coffee.
33:15
Speaker 3: I will not do that now right, And if I do,
33:17
Speaker 3: I'll find a local coffee shop to.
33:19
Speaker 5: Get it right. That's just me. And there again, I
33:22
Speaker 5: am not making a judgment call on whether a person
33:25
Speaker 5: should do that or not. But a person should be
33:27
Speaker 5: aware of their financial situation and if they're not creating
33:32
Speaker 5: savings an investment regularly, if they're living paycheck to paycheck,
33:37
Speaker 5: then they're not going to create the assets that they
33:42
Speaker 5: need to take care of them in the future. So
33:45
Speaker 5: when you say living below your means, you have to
33:48
Speaker 5: consistently be creating savings an investment month in, month out,
33:53
Speaker 5: weekend week out, or you'll never get ahead. You'll always
33:58
Speaker 5: be on that track where it's paycheck to paycheck. You
34:03
Speaker 5: have to break that cycle in some fashion. And then
34:05
Speaker 5: once you break that cycle, before long your money takes
34:10
Speaker 5: on a life of its own. It keeps compounding itself.
34:14
Speaker 5: You have to do the work up front. The market
34:18
Speaker 5: will take the reins at some point and do more
34:21
Speaker 5: of the work than you. You know, market eventually grows
34:24
Speaker 5: faster than you could ever save, and it takes on
34:27
Speaker 5: a life of its own, but you have to put
34:29
Speaker 5: the work in first. So if you're not living below
34:32
Speaker 5: your means, you'll never get to that point. And you know,
34:37
Speaker 5: it's a difficult thing to do, but everyone that's successful
34:42
Speaker 5: has figured out how to do that.
34:44
Speaker 3: Yeah, yeah, you're right, And I'll go ahead and do
34:46
Speaker 3: a little programming note here that coming up on a
34:48
Speaker 3: Hoppy show today, one of his guests on the show
34:51
Speaker 3: is going to be an expert in the world of
34:54
Speaker 3: credit cards and about the credit card debt that Americans have.
34:58
Speaker 3: We talked about living pay check to paycheck. A lot
35:01
Speaker 3: of folks are living paycheck to pay off a credit
35:04
Speaker 3: card or trying to get.
35:04
Speaker 5: The balance, and that, to be honest with you, that
35:06
Speaker 5: is a canara in the coal mine. If you have
35:09
Speaker 5: credit card debt, that is the sign that you're not
35:13
Speaker 5: living below your means. If you are accumulating credit card debt,
35:17
Speaker 5: now it's one thing, you know, if you have discipline,
35:20
Speaker 5: its may be okay to do this. If you pay
35:24
Speaker 5: for everything on a credit card and pay it in
35:26
Speaker 5: full every month, that's a whole lot different thing. Then
35:29
Speaker 5: I have credit card debt that carries from month to month.
35:32
Speaker 5: That I'm paying interest on. If you're paying interest on
35:35
Speaker 5: credit card debt and it lingers, then you clearly are
35:40
Speaker 5: not living below your means, which means you have a
35:45
Speaker 5: budget problem. That's what you have. You have a budget problem.
35:49
Speaker 5: You need to figure out how to do one of
35:51
Speaker 5: two things. Reduce your lifestyle to where it matches your
35:56
Speaker 5: inflows and outflows and creates savings every month, or you
36:01
Speaker 5: need to figure out how to increase your income. If
36:04
Speaker 5: you don't want to decrease your lifestyle. That's the only
36:07
Speaker 5: way out of the financial trap that you feel like
36:10
Speaker 5: you're in, and.
36:11
Speaker 4: A great way.
36:12
Speaker 3: As we get ready to close out the show, I
36:14
Speaker 3: would a great way to do any.
36:15
Speaker 4: Of these things we talked about.
36:16
Speaker 3: It would be the contact a responsible financial planner. And
36:21
Speaker 3: I just happen to know one who's sitting right beside
36:23
Speaker 3: me right now, John bred Out of Fourth Avenue Financial.
36:24
Speaker 3: You can visit the website Fourth Avenue Financial dot com,
36:27
Speaker 3: which phone number John three zero.
36:28
Speaker 5: Four seven four six seven nine seven seven.
36:32
Speaker 3: This may be the last time that you and I
36:33
Speaker 3: talk so in the year twenty twenty four.
36:37
Speaker 4: Any New Year's resolutions for you.
36:40
Speaker 5: Oh gosh, I don't know. I'd like to learn how
36:43
Speaker 5: to drive a boat.
36:46
Speaker 4: Living below your means, John, start small.
36:49
Speaker 5: I don't say I was going to buy a boat,
36:50
Speaker 5: but I might go to learn to be on one.
36:53
Speaker 4: Yeah, yeah, Get to start with a pontoon and work
36:56
Speaker 4: your way out there. You go, all right? Fourth ANUE Financial.
36:59
Speaker 3: You can visit the webs sat again for they have
37:00
Speaker 3: ANUE Financial John for the Avenue Financial dot Com. Join
37:04
Speaker 3: John Burnetta with retire Right Radio each Monday morning here
37:07
Speaker 3: at a twenty. John, have yourself a great, great rest
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Speaker 3: of your day and a great Thanksgiving as well.
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Speaker 5: All right, you do the same.
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Speaker 3: Ryan Nicholson was our producer today. I'll be along with
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Speaker 3: five eight Live. Come it up by nine oh seven
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Speaker 3: or so this morning. Della Get Kathy has Kraus and more.
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Speaker 4: Come it up on the show. I will see you then.
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Speaker 2: Five eight w c HSA ninety six point five on
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Speaker 2: Charleston one oh four point five Cross Lane l u
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Speaker 2: VRC Media Station. We will proud to live here too,